TMI Blog2014 (4) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... disclose fully and truly all material facts necessary for the assessment for the assessment year under consideration, as provided in first proviso to Section 147 - Reopening of assessment in view of facts and circumstances of case is not justified - Ld. CIT(A)'s action in deciding the issue in favour of the assessee is proper and legally correct - Decided against Revenue. - ITA No. 4083 / Del/ 2011 - - - Dated:- 25-10-2013 - Shri G. D. Aggarwal And Shri U. B. S. Bedi,JJ. For the Petitioner : Smt. Veena Joshi, CIT, DR For the Respondent : Shri Pradeep Dinodia, AR ORDER Per U. B. S. Bedi, Judicial Member: This appeal of the revenue is directed against the order passed by Ld. CIT(A) I, New Delhi dated 08.07.2011 relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein it has been clearly stated that in a case where an assessment has been made but income chargeable to tax has been under assessed the assessment, as in the case of the assessee, shall also be deemed to be a case where income chargeable to tax has escaped assessment. Accordingly, the re-assessment proceedings u/s 147 in the case of the assessee for assessment year 2003-04 was initiated." 3. The assessee took up the matter in appeal and before the first appellate authority; the assessee stated that the assessee company has been following mercantile system of accounting. It has also been mentioned in Schedule (19) attached to and forming part of the balance sheet for the year under consideration, while specifying accounting policy in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e issue in favour of the assessee as per para 3.4 and these paras are reproduced as under: "3.3 The submission given by the assessee has been perused and it is seen that the reassessment has been framed after the period of more than four years from the end of the assessment year to which the case pertains. In such a situation the A.O. has to establish that the omission and the failure has been on the part of the assessee. No such finding has been given by the A.O. In fact, the assessee has disclosed the entire details in the documents filed along with the returned of income. In such a situation there has been o failure on the part of the assessee to disclose the necessary details. The following cases which are cited below go to show that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f assessment after expiry of four yeas from relevant assessment year (assessment year 2002-03).' iv) It has also been held that in the case of Arthur Anderson Co. Vs. ACIT (2010) 190 Taxman 279 / 231 CTR 422 / 324 ITR 240 (Bom.) that: 'Where in notes to computation of income, it was disclosed that interest income represented difference between interest received u/s 244 A and interest paid u/s 220 and during assessment proceedings, A.O. raided query regarding said income and, after considering assessee's reply, passed an assessment order, reopening of assessment on the ground that entire interest received u/s 244A was required to be offered for taxation four years after expiry of relevant assessment year was not justified (2003-04).' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t mentioned above. Therefore, reassessment proceeding was rightly initiated by the A.O. and accordingly reassessment has justifiably been framed and Ld. CIT(A) was not justified in deciding the issue in favour of the assessee when in the course of reassessment, the A.O. has authority to initiate reassessment proceedings which have been correctly initiated and reassessment has been framed. Therefore, the order of Ld. CIT(A) being not legally correct, deserve to be revered and that of the A.O. requires to be restored. It was pleaded for restoration of the order of A.O. with respect to this issue. 6. Ld. counsel for the assessee strongly objected to the plea raised by Ld. D.R. and further submitted that he original assessment in this case ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied upon by Ld. CIT(A) and further citations relied upon by the Ld. A.R. of the assessee and find that Ld. CIT(A) has passed well reasoned and elaborate order discussing each and every aspect of the matter in detail. Since, there is no mention about assessee's having failed to disclose fully and truly all material facts necessary for the assessment for the assessment year under consideration, as provided in first proviso to Section 147, therefore, in our considered view, reopening of the assessment in view of the facts and circumstances of the case is not justified and Ld. CIT(A)'s action in deciding the issue in favour of the assessee is proper and legally correct. As such, while concurring with the findings of Ld. CIT(A) on this issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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